694. Valuation of annuities.

It is often necessary to value annuities1 given by will either because the annuitant is entitled to be paid the value of his annuity or for purposes of abatement due to insufficiency of available assets2. In such cases the valuation should be on a strict actuarial basis having regard to the annuitant's age and his expectation of life3.

Where an annuity is given free of income tax, the rate of tax and the reliefs and exemptions to be taken into account in the valuation are those in force at the date when the valuation is made4. When the valuation is